Fund Expenses Matter

"If there’s anything in the whole world of mutual funds that you can take to the bank, it’s that expense ratios help you make a better decision. In every single time period and data point tested, low-cost funds beat high-cost funds. Expense ratios are strong predictors of performance."

- "How Expense Ratios and Star Ratings Predict Success," August 9, 2010. Data Period (March 2005 - March 2010). Russell Kinnel, Director of Mutual Fund Research, Morningstar, Inc (R)

Disclosures: Data provided by Morningstar Direct as of 2/28/2011. Morningstar Domestic Equity Average defi ned by funds with more than 80% of assets in US Equities. Morningstar International Equity Average defi ned by funds with more than 80% of assets in non-US Equities. The IFA Recommended Funds are defi ned by the same rules as the Morningstar Equity averages. Therefore, the IFA average excludes the DFA Global Real Estate Securities which has an expense ratio of 0.41%.


IFA Index Portfolio Blended Expense Ratios

Expense ratios reflect the management fees and other costs incurred by the mutual fund. They are deducted by the fund from the fund assets.